IT operation SBS is to cut overheads by €1.5bn by 2007. As part of that plan it is also axing 2,400 jobs in Germany over the next two years.

In a statement Siemens said: "SBS is accelerating its operational reorientation [and is] initiating an extensive program to improve its competitiveness."

Dr Klaus Kleinfeld, Siemens president and CEO, added that the company's goal is "to quickly put all businesses on a course of profitable growth.

"We do what needs to be done to achieve our earnings targets. Our customer offerings will thus be even more competitive, which is the basis for our company's success and for the future security of jobs at Siemens.